What Are Retirement Plan Distributions?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Distributions from qualified retirement plans are classified as oridanry income and taxed at the effective tax bracket rate of the plan participant. Distributions before age 59 1/2 are assessed a 10% penalty. And in addition, required minimum distributions at age 70 1/2 are mandatory. Qualified plan distributions are also included in the provisional income test for taxation of Social Security.

   Answered on September 6, 2013

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